My neighbor is being foreclosed

[Lusitan]

Re: Zillow

The funny thing is that if you check out the Zillow discussion boards, most of the talk in the "Zestimates" section is from sellers crying that their Zestimates are too low ... whereas here most of the comments seem to indicate that most people think the Zestimates are still too high.

 

[laurence]

I hear what you're saying, but I still can't understand any scenario (short of already borrowing against the equity) where selling a house with $150k equity isn't better than giving it back to the bank.

Yeah, I have to imagine they tapped it for something. I'm sure they wouldn't walk away from equity.

 

[NW-Bound]

Re: Zillow

The funny thing is that if you check out the Zillow discussion boards, most of the talk in the "Zestimates" section is from sellers crying that their Zestimates are too low ... whereas here most of the comments seem to indicate that most people think the Zestimates are still too high.

That's understandable. My two brothers who have larger and more expensive homes than mine used to look at home prices weekly to estimate their net worth. I am sure they now feel Zillow underestimates the price. Compared to actual sales prices 2 years ago, houses for sales in their neighborhood have asking prices at 25% below the top, and there's no taker.

The price of anything is simply determined by what the buyer is willing to pay. Right now, buyers are scarce and far in between. At some point, the price will be ridiculously low. But unlike stocks, it takes too much work to make money in real estate, and I am basically lazy.

PS. Having much more of my networth in equities than real estate, I have to remind myself that I look at stock prices DAILY to estimate my networth. So, no different than my brothers! These stocks are way underpriced by WallSt.

Well, I forgot a BIG difference. I paid CASH for my stocks, and they pay some dividends, no matter how little. But most home owners buy their houses on MARGIN. They face the same peril as some stock buyers facing margin calls. No, not me. I own everything outright, stocks, cars, houses...

 

[bssc]

I went back and looked at Zillow for our neighborhood. It was interesting the wide range per square foot that people were asking. From 117 for an empty house to 164 for someone who bought at the top (June 2006).

That house was bought at 455, they are asking 450 but even Zillow estimates it at 430. Good luck is all I can say. Actually, Zillow estimates are significantly below what most of the people are asking.

I did see one house from foreclosure.com but they don't say which. Also there are two on there at the make me move (tm) price of $600.000.

 

[Bestwifeever]

I just looked up my house on Zillow. Their value is at least 30 percent too high.

My neighbor has his house for sale by owner. He is probably expecting to get the inflated price....

 

[limpid lizard]

Before you gasp, these are small town, rural, long commute to work Idaho figures. I had been watching a house for sale. The list was $129,000, and it sat on the market for 5 months. It went back to the bank for 92K at foreclosure. It sold last week for 60K. It had a fabulous view and sat on just under 2 acres, but the house itself was small and half remodeled when the divorce that forced the attempted sale and subsequent foreclosure took place.

A working person would have about a 25 mile commute and probably earn about $10ph in that area.

 

[RDamien]

Looking at Zillow for my block, they have my home at almost exactly 100k less than what I paid 2 years ago. 506k, I paid 605. My neighbor paid 651 for his a bit after me, they list him at 563.

However, the "value range" for my home is $399,740 - $627,440

A huge spread. I would guess I bought at the upper end, but I dont know how I would determine if my local market has gone up, down or stayed flat.

EDIT: Well also according to Zillow, the 1 year "value trends" are up 10% and 5 year is up 21%. Up 8% since last sale. But this is all based on their Zestimates so I dont know how that applies to real world pricing.

 

[al_bundy]

zillow has the latest sales as well. check them out and see the prices paid per square foot. compare that to your home. should give you a rough estimate

 

[al_bundy]

i tried to convince a family member to give his house back to the bank, but he won't listen to reason

 

[brewer12345]

Before you gasp, these are small town, rural, long commute to work Idaho figures. I had been watching a house for sale. The list was $129,000, and it sat on the market for 5 months. It went back to the bank for 92K at foreclosure. It sold last week for 60K. It had a fabulous view and sat on just under 2 acres, but the house itself was small and half remodeled when the divorce that forced the attempted sale and subsequent foreclosure took place.

A working person would have about a 25 mile commute and probably earn about $10ph in that area.

Stop, you are killing me. Let me guess: property taxes would be under $1k a year?

 

[limpid lizard]

Taxes would most likely be under $500 for the year. The house sits on a hill side above the Clearwater River with a view that would be heaven to wake up to each day. This is in what we refer to as the banana belt due to the very mild micro climate. The growing season is quite long compared to other areas within 35 miles and when I have 6 inches of snow overnight at my house 50 miles away, this area gets a skiff.

If I can unload my house, I'm heading that way. I have my eye on a 5 acre piece closer to the river and lower down the hill. There is even less snow at this level and the summers are a tich cooler due to the hillside sheltering the property from the afternoon sun. So far, there has been no interest in my house. Nada, none, zip, but then within about a 200 mile radius nothing over 200K is moving.

 

[Jay_Gatsby]

Taxes would most likely be under $500 for the year. The house sits on a hill side above the Clearwater River with a view that would be heaven to wake up to each day. This is in what we refer to as the banana belt due to the very mild micro climate. The growing season is quite long compared to other areas within 35 miles and when I have 6 inches of snow overnight at my house 50 miles away, this area gets a skiff.

If I can unload my house, I'm heading that way. I have my eye on a 5 acre piece closer to the river and lower down the hill. There is even less snow at this level and the summers are a tich cooler due to the hillside sheltering the property from the afternoon sun. So far, there has been no interest in my house. Nada, none, zip, but then within about a 200 mile radius nothing over 200K is moving.

Sounds nice. Someone who is FI could choose to live there for a few years, and then move on to somewhere else when the view became boring. It's amazing what possibilities are available if you have the cash....

 

[Lusitan]

I was thinking the same thing Jay ... the possibilities of dramatically lowering your cost of living really open up once you no longer have to rely on a j*b.

 

[limpid lizard]

Depending on your hobbies, it could take quite sometime to become bored in this area. The Clearwater is lauded as one of the greatest steelhead fisheries.

 

[NW-Bound]

The house sits on a hill side above the Clearwater River with a view that would be heaven to wake up to each day. This is in what we refer to as the banana belt due to the very mild micro climate.

I remember the term "banana belt" used to describe a retirement haven in a financial magazine, perhaps in Montana. I am racking my brain, yet cannot recall the state. What I remember was the aerial photo showing a nice lake, a river with boat docks and surrounding green hills. House prices as I remember were not exceptionally low, but quite reasonable for such scenic locale.

 

[thaidyed]

I wonder if buying now, to rent out (investment purchase) makes sense in light of the fact that more and more people are going to be renting for a while?
I refer to people who've been foreclosed on as well as people you'd expect to be setting up a started home but can't get credit, etc...

But like CFB says, the prices aren't really down enough (at least in the places I've looked~ norcal) to justify as an income earner. Though perhaps still could do as a long-term investment to sell well down the line and enjoy tax breaks in the meantime?

Oy vey...I practically grew up in a real estate office (i knew what MLS was before I was ten and made pocket money 'farming') but this market? yeck.

 

[CitricAcid]

Maybe, if you are looking for rental income instaed of appreciation, North Cal isn't the place to be looking. There are many places where the rental income would be much more attractive and able to produce positive cash flow (wait a little bit and L.A. will be at that point). Just don't think if you are looking for mostly cash flow that North California is the best place to start...

 

[bssc]

I remember the term "banana belt" used to describe a retirement haven in a financial magazine, perhaps in Montana. I am racking my brain, yet cannot recall the state. What I remember was the aerial photo showing a nice lake, a river with boat docks and surrounding green hills. House prices as I remember were not exceptionally low, but quite reasonable for such scenic locale.

The area in Colorado where we own land, Buena Vista, Westcliffe etc, refer to themselves as the Banana Belt for their mild winters.

 

[NW-Bound]

The area in Colorado where we own land, Buena Vista, Westcliffe etc, refer to themselves as the Banana Belt for their mild winters.

Thx. A quick research on the Web shows several locales calling themselves "banana belts". I've been to CO, but not Buena Vista. Once retired, and not needing a job, the choices for relocation are numerous.

 

[Westernskies]

Thx. A quick research on the Web shows several locales calling themselves "banana belts". I've been to CO, but not Buena Vista. Once retired, and not needing a job, the choices for relocation are numerous.

Here is my favorite "banana belt":

 

[cute fuzzy bunny]

Thx. A quick research on the Web shows several locales calling themselves "banana belts". I've been to CO, but not Buena Vista. Once retired, and not needing a job, the choices for relocation are numerous.

Just be advised that a 'mild winter' for colorado might mean that it rarely drops below -10.

 

[laurence]

Update

Today was "moving" day (eviction day?). Kind of creepy, the guys clearing out the property had russian accents, and from what I could hear it wasn't nice laughter coming over the fence. "Gazebo isn't part of the list - "CRASH" - now it's firewood. Ha ha ha".

I just hope their kids didn't see much of it. I hope they just think it's an adventure. I know they are moving to Florida. I wish them well.

Hopefully I don't have a crack head neighbor tomorrow!

 

[redmcclain]

The house across the street from us was foreclosed last year - it sat empty for a few weeks (month?) before a realtor purchased it and had the tall grass cut. In the end a nice, older woman purchased it - she throws great parties for her grandchildren when they visit with a huge inflatable bouncy castle.

Ironically, the rumor in the neighborhood is that the previous foreclosed owners were meth dealers. I never witnessed anything suspicious but perhaps even the meth market is experiencing a decline in revenue.